David Hudd Chairman John Foster - Managing Director

Transcription

1 David Hudd Chairman John Foster - Managing Director David Hudd Chairman John Foster - Managing Director Falkland Islands Holdings plc Interim Results Half year ended 30 Sept 2012 Falkland Islands Holdings plc Interim Results Half Year ended 30 September 2012

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3 FKL : Interim Results 2012: Overview Overall Group trading performance in line with board expectations Underlying PBTae* unchanged at 1.19 million (2011: 1.19 million) Diluted EPS on Underlying PBTa 7.8p per share (2011: 9.0p) reflecting 3.1m new shares issued following 10m capital raising in July Maintained Interim Dividend 4.0p per share (2011: 4.0p) Strong Balance Sheet - Cash on hand 10.9 million (March 2012: 2.8 million) Focus on developing property assets in Falklands to service oil exploration activity. FIC has 300 acre site adjacent to proposed location of new port at Navy Point in Port William 70 acres in central Stanley Falkland Oil & Gas (FOGL) 1.175m shares sold in June for 86p/ share profit of 0.77m FKL retains 12.8 million shares (4.0% stake ) in FOGL - Results from Scotia and Loligo endorse potential of acreage - Noble and Edison farm-ins mean FOGL has $220m in cash post drilling - * PBTae = profit before taxation, amortisation and non trading items 3

4 FKL : Summary P&L - 6 months ended 30 September months ended 30 September Change +/- Turnover 16,518 16,510 - Trading Profit 1,352 1, % Pension scheme financing costs etc (66) (65) Pontoon lease interest Net Bank / HP interest received/(paid) (118) 26 (63) (30) Net financing costs (158) (158) +0.0% Underlying Pre Tax Profit (PBTae) 1,194 1, % Amortisation of Intangibles (199) (198) +0.5% Costs of Open offer (682) - - Gain on sale of FOGL shares Profit Before Tax 1, % Diluted EPS (PBTa basis) 7.8p 9.0p -13.3% PBTa profit before taxation, amortisation and non trading items 4

5 FKL : Segmental Analysis - 6 months ended 30 September Months ended 30 September Turnover Change +/- FIC 6,942 6, PHFC 2,216 2, % Momart International 7,360 7, % Total Turnover 16,518 16,510 - Pre Tax Profit FIC % PHFC % Momart % Underlying Pre Tax Profit (PBTa) 1,194 1, % 5

6 FIC : Aerial view of Stanley Harbour Map ref: site no 04 For Map see slide 28 6

7 FIC: 6 months ended 30 September 2012 Overall trading performance in line with prior year Revenue down slightly at 6.94 million ( m ) PBTa increased 5.9% to 0.54million ( Operating Profit unchanged ) Retail sales ( 2/3rds of revenue ) increased by 4.7% to 4.5m despite continued squeeze on household budgets Good growth at expanded West Store at MPA Improved gross margins from improved UK purchasing Peacocks clothing sales to be replaced with BHS in Q Building Supplies sales up by 12% Automotive revenue ahead by 23% to 0.85m following investment in parts & accessories shop New Land Rover show room completed in November 2012 Total revenues from Support services were marginally lower at 1.7million ( m ) No properties sold in the period ( m ) / Lower stevedoring income no Northbound oil rig traffic Property rental income reduced marginally but underlying demand still strong Premier Oil Farm in to Sea Lion field in July First Oil in underpins strong growth prospects. 7

8 FIC: Preparing for oil 10m capital raising in July 2012 for investment in the Falklands Surplus funds on deposit earning 2-3% pa pending investment Property Director started in Aug 2012 to develop opportunities in Stanley Joint Venture with Trant Construction (SATCO) set up to : Fast track construction of existing land for rental to oil industry Bid for Falkland Islands Govt ( FIG ) infrastructure contracts roads,utilities etc Geo technical surveys on key property sites commissioned Initial focus on new residential units / serviced apartments for oil industry warehousing and offices to follow No rigs in Falkland waters during 2013 but 3D seismic programme for FOGL / Noble & Borders in Q1 Q2 Demand expected to pick up sharply from mid 2014 onwards for Sea Lion development 8

9 FIC: New Deep Water Port FIG decided in October 2012 to site new deep water port at Navy Point FIC exploring PPP with FIG to finance and develop the new port FIC has 300 acre site on peninsula at Fairy Cove adjacent to Navy Point potential for warehousing / lay down areas, offices etc in medium term. 9

10 FIC : Development sites in Stanley Crozier Place and East Jetty Stanley Harbour YPF site on Stanley Harbour 2.25 acres Fairy Cove : 300 acre site next to Navy Point harbour site Fitzroy Road : site for residential development /serviced accommodation Coastel Rd site on Stanley Harbour 7.5 acres 10

11 Portsmouth Harbour Ferry Company (PHFC) 11

12 PHFC: 6 months ended 30 September 2012 PBTa marginally lower due to one off hit to commuter traffic Revenues ahead by 3.3% at 2.22 million PBTa (after overhead allocation) reduced to 0.31million ( m ) Fare rises of 3-4% in June 2012 Adult daily return now 2.80 ( 2.70), 10 Trip Adult now ( ) Child /Senior Return 1.80 ( 1.80) Passenger numbers down 7.6% worse than expected ( % ) Weekend discretionary travel held up well at -1.6% (vs -8.8% in 2011 ) BUT Weekday commuter traffic down by -9.8% ( vs -2.2% in 2011 ) due to change in MoD expenses policy One off hit Unwelcome step change down but not a trend Underlying cash flow remains strong 12

13 Momart : 6 months to 30 September

14 Momart : 6 months ended 30 September 2012 Encouraging performance despite absence of large one off contract seen last year Revenue maintained at 7.4million PBTa % at 0.34million ( m) Continued recovery in Exhibition volumes Revenue + 15% to 3.95million ( m ) Gross Margins recovered + 2.8% Increased divisional contribution on par with Gallery Services Gallery Services Revenue declined 19.6% ( - 0.6m ) to 2.54million due to absence of large one off Dragon contract seen in H of 0.9million Underlying GS turnover increased by 12% ( m excl Dragon ) Increasing work for auction houses Storage revenues saw continued growth +12.8% to 0.87 million ( m ) Commercial art market remains buoyant Increasing Demand for Momart s high end technical services First modules of New ERP system on line. Expected completion March 2013 Office move to Canary Wharf planned Q improved client facing amenities & staff retention 14

15 FKL : Balance Sheet All figs 000 s 30 Sept March Sept 2011 Tangible Fixed Assets 13,391 12,911 12,839 Investment properties at cost * 1,435 1,452 1,464 Goodwill & Intangibles 12,514 12,713 12,913 Quoted investments at m.v 8,400 9,030 5,641 Deferred Tax & other assets Total non current assets 36,493 36,869 33,549 Working Capital - Net 3,661 2,253 3,217 Cash 10,876 2,751 2,376 Corporation tax payable (632) (508) (666) Bank Loans etc due within 1 year (1,160) (1,140) (1,116) Dividend payable - - (507) Net Current Assets 12,745 3,356 3,304 Bank Loans etc due after 1 year (1,764) (2,232) (2,623) Finance Lease re Pontoon due after 1 year (4,901) (4,913) (4,932) Pension Provisions & Def. Tax (3,607) (3,592) (3,545) Equity Shareholders funds 38,966 29,488 25,753 Net Assets per share * Market value of investment & rental properties 4m+ 15

16 FKL : Cash flow 6 months ended 30 September Operating profit 1,153 1,148 Depreciation Amortisation of Intangibles Provision for share based payments Cost of July 2012 capital raising (682) Increase in working capital (1,373) 72 Net Cash Flow from Operations (incl property sales) (19) 2,020 Net finance interest received / (paid) (50) (212) Tax paid (222) (260) Proceeds from share capital issued, net of expenses 9,878 - Dividends paid (866) - Capital expenditure (1,023) (5,726) Pontoon Lease - 4,957 Proceeds receive on sale of FOGL shares 1,005 - Other (130) 24 Net Cash Flow 8, Decrease in Bank Borrowings and HP Increase in Cash 8, Decrease in Net Bank Borrowings & HP 8,

17 FKL: Net borrowings and liquidity 30 Sept March Sept Bank Loans & HP due within 1 year (1,160) (1,140) (1,116) Bank loans & HP due after 1 year (1,764) (2,232) (2,623) Total Bank Borrowings & HP (2,924) (3,372) (3,739) Cash 10,876 2,751 2,376 Total net cash / (debt) excl long term Pontoon lease 7,952 (621) (1,363) Increase / (Decrease) in net cash /debt 8, Long term finance lease re Pontoon (4,901) (4,913) (4,932) Total Net Cash /(Borrowings) 3,051 (5,534) (6,295) Net Tangible Assets 26,452 16,775 12,840 Capital Gearing Net -11.5% 33.0% 49.0% 17

18 Falkland Oil & Gas : Location Map 18

19 FKL : Investment in FOGL 1.175m FOGL shares sold in June 86p share - for 1.0m profit 0.77m FKL retains 12.8m shares ( 4.0%) - 1 FOGL share for every FIH share in issue Cost of FOGL holding 2.58m - 20p per share Scotia well completed 27 November 2012 gas discovered but reservoir not commercial at this location Further evaluation of Loligo & Scotia results in H FOGL expect to have $220m in cash (c 43p /share) on completion of Scotia Farm in by Noble Energy Inc Aug 2012 for 35% stake Noble expected to spend $ million over next 3 years Two 3D seismic programmes covering 5,000sq km commencing Q Further exploration wells planned 19

20 FKL : Outlook FIC Exciting medium term growth potential linked to oil production in 2017 Absence of exploration rigs in 2013 will see short term dip in local demand Argentine pressure on cruise ship operators likely to squeeze tourist income 3D seismic programme and new Land Rover dealership will mitigate effects Increased investment in property and infrastructure in readiness for oil Discussions with FIG continuing re new port and possible PPP consortium PHFC Fares increased to cover inflation costs under tight control MoD effect ( -5-6% )will continue into H2 then bottom out Cyclical recovery in medium term Momart Museum Exhibitions division showing welcome growth. Commercial art market still buoyant and growing storage business expanding New ERP system on line in 2013 move to new offices in Q Overall Spread of trading interests underpins Group s financial stability FIC well placed to take advantage of oil production in Falklands 20 20

21 Appendices Maps of Principal FKL Land Holdings in Stanley 21

22 Map of Principal FIC sites in Stanley area Scale : 1 : 12,500 22

23 Close Up Map of FIC Sites in Central Stanley Scale 1:

24 Falkland Islands Holdings plc